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Is There a Change of Heart in Central Banks?
The ECB just hiked raised by 75 basis points, which brought the deposit rate to 1.5%. And they're acknowledging that inflation might stay higher for a lot longer. What do all these jurisdictions have in common? And the answer is inherent fragilities. Think about Canada or Australia. It's very simple. It's the housing market. The dollar sits at the epicenter of our system. When the system becomes shaky, the first impact,. it's not at the epiccenter of the pyramid, but it's at the very top and at the fringes of the pyramid. There is a little bit of stress being thrown into the system until we get out of this cycle.